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Curated Learning Resources
- What Happens When A Founder Is Fully Vested?When a startup founder and CEO becomes fully vested in their stock options after four years, there are many issues to consider, including whether the founder is still the best person to lead the company and if they should receive a new equity grant. There is no standard practice and each situation is unique. A new grant is more likely if the founder owns a small stake and the company is doing well. However, founders with over 25% ownership rarely receive new grants. Fred suggests founders raise the issue carefully with investors and the board to find a compromise that works best for the company.